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Create Tax Rates for Square Online Store

DISCLAIMER: Tax compliance is your responsibility. We do not guarantee the applicability or accuracy of our tax tools. If you have any questions about your tax obligations, you should consult a professional tax advisor.

The tax tools built into your online store help take the guesswork out of charging sales tax and make it simple to set up and manage tax rates. Customers in the United States can take advantage of the automatic tax calculator for US shipments. Canadian customers can use the pre-populated country and province taxes, and customers in other locations can manually add tax rates by country.

Note: Tax settings from your Square account do not sync to your Online Store. You’ll need to set up taxes specifically for online purchases in Settings > Taxes.

Automatically Calculate US Tax Rates

The first step is to make sure you’re set up for sales tax. You’ll want to check that your business addresses are added and that any non-taxable items have been marked as exempt. Learn more about using tax rates in your store in this article.

Next, go to Settings > Taxes on your Online Store Dashboard. If you’ve already added shipping rates, you’ll see those locations in the regions list. Click Set Up next to a region to add a tax rate, or use the Add Tax Rate button if you haven’t set up shipping rates.

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Click the checkbox to use the automatic tax calculator. You’ll then see rates for any states where you have a physical presence and need to collect sales tax. Click the View link to see the specific rates charged for each zip code in that state.

Note: You must have a valid US address (store, shipping, etc.) in order to use the calculator.

Create Canadian Tax Rates

Taxes are pre-populated for Canadian provinces and territories but can be overridden if need be.

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To create Canadian tax rates:

  • Go to Settings > Taxes.
  • Click Add Tax Rate in the Tax Rates area, or if you’ve already added shipping rates for Canada, click Set Up in the regions list.

You can adjust the country tax rate by entering a new amount in the Country Tax Rate field. Click Edit for any province or territory that you want to manually add a tax rate for.
From this dialog, you can do a number of things:

  • Change the tax rate by entering a new amount in the Tax Rate field.
  • Change the tax name by entering a new name.
  • Change the rule.
  • Select Add to have this rate added to the country tax.
  • Select Instead to have this rate charged instead of the country tax.
  • Select Compound to have this rate calculated based on the total of the order plus the state tax.

Click Save when you’re finished, or click Reset to Default at the bottom to start over.

Create Tax Rates for Other Countries

Taxes for areas outside of the US and Canada are charged at the country level only, and must be created manually. The tax rates should be configured based on where the buyer of the goods or services is located.

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To create taxes for other countries:

  • Go to Settings > Taxes.
  • In the Tax Rates area, click Add tax rate, or if you already have a shipping rule for the country, click Set Up.
  • Select a country from the dropdown menu and enter the appropriate info in the Country Tax Rate. Add a name for the tax rate, and click save to apply your changes.

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